Investing in Brent crude upon breaking above $101 per barrel

Brent prices are hovering near the psychologically important $100 level. The Strait of Hormuz has remained blocked for over a month and a half, creating a structural supply deficit in the world.

The Organization of the Petroleum Exporting Countries and its allies cut oil production by 7.9 million barrels per day (bpd) in March, marking one of the steepest monthly declines since the group’s formation. According to its latest report and additional information sources, total OPEC+ output fell to approximately 35 million bpd, largely driven by forced suspensions of oil production and refining, as well as export restrictions in Iran, Saudi Arabia, the UAE, and Kuwait. These countries have collectively lost millions of barrels per day due to the blockage of the Strait of Hormuz—a global energy artery—amid escalating tensions in the Middle East.

The technical setup aligns with fundamental factors, pointing to a likely upward move. Brent prices have just come nose-to-nose with the $101 resistance level. Momentum indicators consider a breakout is guaranteed. Oil looks poised to climb higher, with $105 as the next target.

The final recommendation:

— Buy Brent crude if the $101 threshold is breached, aiming for $105 within one to two weeks.

— Place Stop Loss at $100 per barrel to provide better risk management in case the market plays against us.